BSE Sensex gains over 300 points; banking stocks surge

Reuters Market Eye - The BSE Sensex gains more than 300 points and the Nifty rises around 100 points. Gains are being led by defensive stocks and banks.

The RBI is largely expected to raise the repo rate by 25 basis points, its second consecutive monthly hike. The BSE banking index is up 2.5 percent, with stocks such as ICICI up 2.6 percent.

Lupin Ltd gains 1.3 percent, while Sun Pharmaceutical Industries Ltd is up 0.8 percent.In consumer goods stocks, ITC Ltd is up 1 percent.

Larsen & Toubro Ltd gains 1 percent ahead of its July-September earnings later in the day.

(Reporting by Abhishek Vishnoi)